Milestones in Vietnam shrimp export in 2011

News 14:14 13/09/2014
(vasep.com.vn) Vietnam shrimp industry has experienced many significant landmarks in 2011... Despite of many hardships in shrimp producing and exporting in 2011, Vietnam shrimp industry reaped rich rewards of US$2.396 billion in export value.

Shrimp export hit a record high of nearly 2.4 billion

Despite of many hardships in shrimp producing and exporting in 2011, Vietnam shrimp industry reaped rich rewards of US$2.396 billion in export value. Hiking price of shrimp at the early months of the year was attributable to the record high exports. The shortage of shrimp supply from major suppliers such as Indonesia, China or Vietnam pushed up the global shrimp price while import demand from main consumers (the U.S., EU, South Korea) remained at the high levels. This helps Vietnam shrimp industry to gain encouraging results in 2011.

In 2011, Vietnam shrimp was shipped to 91 markets worldwide with export revenue of US$2.4 billion, up 13 percent over 2010. Japan, the U.S., EU, China (including Hong Kong) and South Korea are 5 largest shrimp importers, making up 81.7 percent of the proportion of Vietnam shrimp export value.

In which, Japan was the leading importer with the export value of US$607.2 million, occupying 25.3 percent, followed by the U.S. (US$558.5 million), EU (US$412.8 million), China (US$223.6 million) and South Korea (US$157.5 million).

Viet Nam won the anti-dumping duty case against the US

In the middle of July/2011, World Trade Organization (WTO) judges released the final decision on the U.S.’s “zeroing” method to impose anti-dumping duty on frozen shrimp from Vietnam.

In WTO’s conclusion, the U.S.’s using the zeroing method in calculating anti-dumping margins of Vietnam shrimp in two phases of administrative review from 1st Feb 2006 to 31st Jan 2007 and 1st Feb 2007 to 31st Jan 2008 violated WTO rules and the U.S. was requested to adjust its duty calculation method in accordance with WTO principles.

The panel concluded that the U.S.’s using available data to calculate anti-dumping duty was inconsistent to WTO rules. Many shrimp exporters of Vietnam used to pay 25 percent duty rate which hampered them to export their shrimp products to the U.S.

WTO’s final decision requested the U.S. to remove this calculation in the next administrative period of review. This is an opportunity for shrimp exporters which do not dump their products to retreat from the case. WTO’s the decision contributed to promote Vietnam shrimp exports to the U.S.

Important role of whiteleg shrimp

In 2011, black tiger shrimp exports of Vietnam reached US$1.430 million, equal to the figure of 2010. Yet, in 2011, whiteleg shrimp exports of Vietnam reached US$704 million, showing an increase of 70%. In 2011, epidemic hit mass industrial farming area of black tiger shrimp in Soc Trang, Bac Lieu, Can Tho, Ca Mau provinces. More than 81,000 hectares of black tiger shrimp farming were hit by plague.

Many shrimp exporters considered to import raw material, however, a lot of complicated procedures as well as high import duty prevented them from importing. Whiteleg shrimp business brought a lot of achievements for shrimp producers and exporters in 2011. 

Outlook

It is too early to make outlooks for shrimp industry in 2012. But, in the short-term, Vietnam shrimp exports continued to gain substantial results because prawn supply from Thailand was deficient due to flood and importing demand from the U.S., EU and South Korea will remain at high levels.

 

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